A
nd for the first time in the country’s histo-
ry we saw a dramatic deindustrialisation
of the Greek economy. SYRIZA’s propos-
al for a productive reconstruction focuses on this
major overhaul that the country’s growth model
needs to undergo. We must once again focus on
making the most of the reconstruction of agricul-
ture, of agriculture’s high added value, of manu-
facturing — but in a much different manner than
in the past.
This model went bankrupt, to be replaced by the
memorandum. The memorandum implied a very
specific growth model, based on three concepts,
which I will mention in brief:
Privatizations in a privatized economy. To demon-
strate its failure, let me remind you that, to this
date, privatization sales amount to no more than
€3 bn. For comparison purposes, in 2009 annual
investment in Greece stood at €30 bn: €10 bn in
public investment, €10 bn in private investment,
€10 bn in the banking sector. The idea that pri-
vatisations can turn the economy around is an
unheard-of theory, and since there are no busi-
nesses to be privatised we see this great shift
towards the sale of infrastructures and public
lands. Total failure.
Second concept: Widening social inequalities
improves the performance and competitiveness
of the economy; ergo the changes in labour rela-
tions and so forth.
Finally, the third key concept is that the size of the
government should be reduced and the tax base
should be broadened to include low-income indi-
viduals as well. All three concepts failed, bringing
Greece to an impasse, as its output fell to 25% of
its previous levels.
This huge reversal leads to two key conclusions.
First: We believe that reducing —not increasing—
social inequalities is a factor of economic growth.
There is also a second conclusion. We must shy
away from such shortcuts, like those imposed by
the memorandum; we must calmly and earnestly
consider the great turnaround that the country so
desperately needs.
Let me sum up the principles of such a turn-
around:
● First: Reducing social inequalities is a factor of
progress.
● Second: Attributing to the environment the
same value we attribute to an archaeological
site is a factor of progress.
● Third: Public goods are non-negotiable because
Trade with Greece
10
Up to 2009, we had been pursuing a growth
model that landed the country on the rocks.
Let me point out one of its tragic
consequences: For the first time in modern
economic history, during the period 2000-2009
Greece’s agricultural production was stagnant
or decreasing, in absolute terms.
Bold measures for
restarting the economy
By George Stathakis,
Minister of Economy, Infrastructure, Shipping and Tourism
